Last Modified: Tuesday, July 30, 2013 at 11:05 p.m.

According to a news release from the companies, CHS will acquire HMA for about $7.6 billion, including taking on about $3.7 billion of debt. When the merger is complete, CHS will own or operate about 206 hospitals in 29 states.

Under the terms of the agreement, CHS will acquire all of the issued and outstanding common stock of HMA for a combination of cash and CHS stock. HMA shareholders will own about 16 percent of the shares of the combined company following the close of the transaction.

The merger agreement was unanimously approved by the board of directors of CHS. HMA's board of directors also unanimously approved the agreement and recommends its stockholders approve the merger.

“This compelling transaction provides a strategic opportunity to form a larger company with a diverse portfolio of hospitals that is well positioned to realize the benefits of health-care reform and to address the changing dynamics of our industry,” said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems. “Our complementary markets and the ability to form networks in key states, along with the synergies that will be available to us, can create value for the shareholders of our companies, the communities we serve, our employees and medical staffs. We look forward to working with the physicians and employees of HMA to advance the commitment shared across both organizations to pursue clinical excellence and to deliver quality care for patients.”

William J. Schoen, HMA's chairman of the board, said, “This agreement represents the successful conclusion of the strategic review process that our board of directors commenced at the end of last year, during which we evaluated several alternatives, including remaining independent and potential transactions with other strategic parties. Our agreement with CHS provides substantial value to our shareholders. ... Shareholders will receive immediate value in cash, as well as CHS stock that will allow them to participate in the future growth of a true industry leader. We are pleased that this combination will create an even stronger organization for the benefit of our patients, physicians, associates and the communities we serve.”

CHS expects the transaction to close by the end of the first quarter of 2014 and is subject to approval by a 70 percent vote of HMA's stockholders, antitrust clearance, receipt of other regulatory approvals, the absence of certain adverse developments and customary closing conditions.

According to its website, GRMC has been in operation for more than 100 years, has 346 beds, has more than 200 medical staff members and offers a range of health services.

Riverview's website says it has been open since 1931, has 281 beds and offers primary and specialized care along with a comprehensive range of complementary services and programs.

<p>Community Health Systems Inc., parent company of Gadsden Regional Medical Center, will merge with Health Management Associates Inc., parent company of Riverview Regional Medical Center.</p><p>According to a news release from the companies, CHS will acquire HMA for about $7.6 billion, including taking on about $3.7 billion of debt. When the merger is complete, CHS will own or operate about 206 hospitals in 29 states.</p><p>Under the terms of the agreement, CHS will acquire all of the issued and outstanding common stock of HMA for a combination of cash and CHS stock. HMA shareholders will own about 16 percent of the shares of the combined company following the close of the transaction.</p><p>The merger agreement was unanimously approved by the board of directors of CHS. HMA's board of directors also unanimously approved the agreement and recommends its stockholders approve the merger.</p><p>“This compelling transaction provides a strategic opportunity to form a larger company with a diverse portfolio of hospitals that is well positioned to realize the benefits of health-care reform and to address the changing dynamics of our industry,” said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems. “Our complementary markets and the ability to form networks in key states, along with the synergies that will be available to us, can create value for the shareholders of our companies, the communities we serve, our employees and medical staffs. We look forward to working with the physicians and employees of HMA to advance the commitment shared across both organizations to pursue clinical excellence and to deliver quality care for patients.”</p><p>William J. Schoen, HMA's chairman of the board, said, “This agreement represents the successful conclusion of the strategic review process that our board of directors commenced at the end of last year, during which we evaluated several alternatives, including remaining independent and potential transactions with other strategic parties. Our agreement with CHS provides substantial value to our shareholders. ... Shareholders will receive immediate value in cash, as well as CHS stock that will allow them to participate in the future growth of a true industry leader. We are pleased that this combination will create an even stronger organization for the benefit of our patients, physicians, associates and the communities we serve.”</p><p>CHS expects the transaction to close by the end of the first quarter of 2014 and is subject to approval by a 70 percent vote of HMA's stockholders, antitrust clearance, receipt of other regulatory approvals, the absence of certain adverse developments and customary closing conditions.</p><p>According to its website, GRMC has been in operation for more than 100 years, has 346 beds, has more than 200 medical staff members and offers a range of health services. </p><p>Riverview's website says it has been open since 1931, has 281 beds and offers primary and specialized care along with a comprehensive range of complementary services and programs.</p>